Assessment #1 part 1, Accounting: The Real Questions!

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My understanding of Accounting, its key concepts and the role it plays in society began with basic understanding of formulas and procedures. I, for the longest time, was one of those people that would learn purely to collect the information and regurgitate it in assessment condition. Personally, I believe this method of learning, or what I will call pseudo-learning from here on, was largely successful for what I required at the time. After reading the Introduction and Chapter 1 Study Guides, I see how fundamentally wrong that method is, especially if I wish to enter a place of industry where learning is, in my opinion, never to cease. But I still wonder as to whether my original method of learning is useful in any way whatsoever? Or are we to live our lives without that way of learning?

Light-bulb-moment

I was quite nervous in realising that my pseudo-learning patterns would need to change at first, they’re fundamentally incorrect, after all. However, I’ve come to realise that understanding what is being taught is not only more enjoyable than struggling through subjects and situations, but it is ultimately more beneficial to me in the future. I want to enter the world of Business, Finance and Accounting, yet if I cannot understand what is being taught now, then I doubt the approach will be as progressive as I would like it to be.

Of all key concepts that I reviewed, one stood out and resounded with me primarily. Getting things done early is one of my personal weaknesses. Stemming from procrastination, due to a discomfort in realising the amount of material to learn, I struggled to find a way to get around it, but I believe that I have found the answer. As I explained above, I’ve been studying in a way that creates situations of frustration and discomfort in trying to cram in information that I might not even understand. After some brainstorming, I’ve come to believe that procrastination may very well be minimised if I truly enjoy the subject, which can only be done if I understand the source material to begin with.

Even at first glance, I now realise that this course will be completely different to what I learned at High School. I was quite nervous after reading how this unit delves further into not only the fundamentals of Accounting, but how it relates to firms and, in my opinion, society that surrounds as such. Nevertheless, this discovery brings me to ask this question: Will Accounting Processes be undertaken and learned as in depth as they were in high school, such as spreadsheets and reports of several forms? I feel as though this is still a largely fundamental topic to learn.

By far, my most significant key concept of focus would relate to what you refer to as ‘Business realities’. It is something I do not fully understand, and the faster I can learn that concept, the better. Even though I intend to do my own background reading, and even though it may be something simple that I am missing, I still wish to run this through my head. Reality is life, and a Business, I believe, is something of its own world, per se. Simply put, Business Reality would quite simply be what goes on in a business, much like your own stories of undertaking your time in your business doing the book work and utilising a firm of Accountants to formulate the reports.

Clinuvel-Logo

I was intrigued in the reality of Accounting being a predominant force in the Business Industry. As like all ACCT11059 students, I was provided with a Company on Friday, Clinuvel Pharmaceuticals. Shortly after being given the Company, I took to looking at their website, looking for not only the Financial Reports that will be required later, but the people within the Company itself. I soon discovered that the Chairman, Stanley McLiesh, had no apparent Accounting Degree. In realising this, I began to question the idea that most CEO’s have some background in Accounting, or at least, that my Company was the exception. After some further research of the other individuals in charge at Clinuvel, I noticed that Darren Keamy, the Chief Financial Officer, is a CPA (Certified Practicing Accountant). Perhaps I was quick to “jump the gun”, but I am glad I continued to investigate, after all, investigation, I believe, is a pathway to understanding.

The real question has already been asked, on page 6 in chapter 1. Would it be easier or more difficult to engage with and figure out the undertakings in a business with the help of Accounting? I believe the answer speaks for itself. We would not be where we are now if it were not for “Father of Accounting,”Pacioli, and his highlighting of Double Entry Accounting in his 1494 Publication, which gave way to so much innovation over the years. In reading thirty pages, I’ve already come to understand so much more about Accounting that I have never known before. With something as much as learning the Latin words debere (to owe) and credere (to entrust), I’ve gained a firmer grasp on the internal process of a firm. I like to look at the idea of harder versus easier this way, can a doctor tell their patient they have a medical condition if the doctor cannot understand the area affected in the first place? Does a tradesman tell you what’s wrong with your car if they’ve never learned the ins and outs of being a mechanic before? If you said no to both of those, then it’s easy to look at the situation of whether it’s harder or easier. A Business Manager might have no clue of the in-depth details of their Ledger or their Journal, and without that knowledge, there is a lot left to be desired for an efficient business, I’m sure of that.

Accounting is the fundamental piece of the puzzle that is the Business Industry. A Business Manager that cannot understand the fundamentals of Accounting, such as Assets, Liabilities, Equities, Expenses and Revenues, or better yet, the fundamental equation, Equities = Assets – Liabilities will have issues operating an effective business. What put me off guard, however, was the extended equation, Assets + Expenses = Equity + Revenue + Liabilities. I am generally assuming that this is essentially the basis of debits vs credits however, but it definitely highlights a key concept I have yet to fully understand.

Finally, I’d like to mention something I picked up in what I read concerning partnerships, companies and sole traders, as well as group and individual workers. I personally believe one is a stark derivation of the other. We’re here now, at the beginning of our Careers in University, seeking to network with dozens of other like-minded business minds. It is of my own opinion that we have the choice to either start those connections, work in groups, just as partnerships and companies do, even sole traders begin with the help of others. Even though with today’s technology beginning to innovate and find new ways for people to connect, however, I believe that, as was said in the material, face to face communication is still a highly effective method of communication. In my opinion, it is still the best way to communicate, it shows the ability to reach out to people on a personal to semi-personal level, as well as provides the ability to receive the message intended, but with the help of body language, tones and more. In essence, I’ve learned and understood enough this week to know I have much more to learn, but I’ve also learned to take each step in my stride, and not let it become overwhelming.

Posted by Daniel Rehbein on 12/03/2017 at 6:47pm

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